Rising unemployment is complicating the Obama administration’s effort to reduce foreclosures and stabilize the housing market.
The first wave of mortgage delinquencies was sparked by borrowers who took out subprime mortgages and other risky loans that became unaffordable, causing them to fall behind on their monthly payments. But the current wave is increasingly driven by unemployment [...]

From the A.P.
South Carolina’s highest court on Tuesday temporarily stopped thousands of pending foreclosure sales in the state to give homeowners more time to take advantage of a new federal program to help them refinance mortgages.
The injunction — which mortgage experts said appeared to be the nation’s first court-ordered stop for an entire state — [...]

WSJ has a blog post covering a Dataquick release on the volume of California foreclosures.  Not that it will be any surprise, but it appears the volume of foreclosures will be increasing.
Some 135,000 default notices were sent out in the first three months of the year, an 80% increase from the fourth quarter of 2008 [...]

ABC news has an article based on a report from First American CoreLogic stating 60% of homeowners with mortgages higher than the value of their homes live in the states of California, Arizona, Florida, Nevada, Georgia and Michigan.
To define the locations further:
The problem is much worse in far-flung suburban neighborhoods where builders flooded the market [...]